Performance at month end

Impax Environmental Markets PLC
06 January 2005

IMPAX ENVIRONMENTAL MARKETS plc



All information is at 31 December 2004 and unaudited



DATA AND PERFORMANCE


Data                                      Pricing & Performance
Share Price (pence)                 71.25                         IEM            MSCI         Impax
                                                            Net Asset Value      World         ET50
Total Fund Size (m)                  38.3  Pence (31.12.04)       76.5            n/a          n/a
Management fee                       1.0%  Premium/discount      -6.9%
Established              22 February 2002
Fund structure           Investment Trust       Performance
Number of stocks                       62       1 month (%)      +3.0%           +3.3%        +4.0%
held
Exchange                           London      3 Months (%)      +12.5%          +5.2%        +7.5%
Currency                              GBP        1 year (%)      +15.9%          +5.2%        +5.0%
ISIN Number                  GB0031232498        2 year (%)      +41.7%         +23.8%        +24.1%
Sedol                             3123249  Year to date (%)      +15.9%          +5.2%        +5.0%
Reuters RIC Code                    IEM.L
Bloomberg Code                     IEM LN




TOP TEN HOLDINGS


Company                        Holding %      Description                  Country
Itron                                3.8      Meters & software            US
Casella Waste                        3.6      Waste disposal & recycling   US
RPS Group                            3.3      Environmental consulting     UK
BWT                                  3.3      Water treatment              Austria
Kurita Water                         2.8      Water treatment              Japan
Vestas Wind Systems                  2.8      Wind                         Denmark
Zenon Environmental                  2.7      Membranes                    Canada
CDS Technologies                     2.7      Stormwater & wastewater      Australia
Quantum Fuel                         2.6      Fuelcells & hydrogen         US
Tetra Tech                           2.2      Environmental consulting     US

                 Total              29.8



PORTFOLIO ANALYSIS*


Geographical                         Company Size
North America             51%        >£500m                  21%
Europe                    40%        £100-500m               56%
Rest of the World          9%        <£100m                  23%

Sectoral                             Profitability
Energy                    35%        Profitable              89%
Water                     33%        Pre-Profitable          11%
Waste                     31%
Cash                       1%
* of funds invested as of 31 December 2004









MANAGER'S COMMENTARY (December 2004)


The Company NAV was up +3.0% during the month compared with the MSCI World
Index, which increased +3.3% and the Impax ET50, which increased +4.0%.  The
energy and energy equipment stocks were weakest as the oil price fell 12% with
Brent Crude finishing the year at $39.9 per bbl.. The year finished positively
for Environmental Markets stocks with a broad advance across each of the sub-
sectors; the main developments are discussed below. Also during the month, an
IEM sister open-ended product (Impax Environmental Markets Ireland) was launched
on the Dublin Stock Exchange.

Despite the fall in the oil price, the alternative energy and energy efficiency
stocks continued to perform well.  Westport Innovations (clean engines, Canada)
announced progress in different areas of its business with new relationships
with Beijing Sinogas in China, Renault Trucks in Europe and South Coast Air
Quality Management District in California.  In the wind sector there were a
number of large orders for the main independent turbine manufacturers (Vestas,
Gamesa and Repower), with Gamesa (wind, Spain) announcing both the sale of six
wind farms in Spain to an Australian infrastructure fund that is 50%-owned by
Babcock & Brown, and that Iberdrola has increased its stake in the company to
26%.  Other news included the IPO of Questair (hydrogen purification, Canada),
Carmanah's (solar powered LEDs, Canada) large order for LED edge-lit illuminated
advertising signs in Canada, positive results from FuelCell Energy (US), and the
selection of Quantum (fuel cells & hydrogen, US) by General Motors for an
emissions testing contract.

In the water treatment & pollution control sector, we had updates from two
companies that made important acquisitions earlier in 2004.  First Technology
(sensors, UK) reported results that were ahead of expectations principally due
to the strong growth in BW Technologies which was acquired by First in May. 
Meanwhile, Cuno also reported strong results as well as a good contribution from
WTC Industries that was acquired in August. Several companies announced
important orders during the month - BWT was awarded a large order for two
desalination plants in the United Arab Emirates reflecting the growth in
desalination markets as costs continue to fall; Hamworthy (onboard pollution
control, UK) announced a £48m order for liquid natural gas (LNG) reliquefaction
systems from South Korea, and Bioteq Environmental (mining cleanup, Canada)
announced a second order from Phelps Dodge for a facility in Oklahoma.  
Finally, CDS Technologies took a controlling stake in Triwater (wastewater
treatment, Australia) to strengthen the company's presence in the Australian
market.

There have been positive developments for Tomra (reverse vending machines,
Norway) during the month as Germany harmonised its national deposit scheme for
packaging materials across the country.  This should pacify the European
Commission and accelerate the adoption of the scheme which, in turn, should lead
to earlier orders for Tomra machines.  In addition, the company announced the
acquisition of Orwak Group (compaction solutions, Sweden) which will diversify
its market exposure, and also that the UK retailer Tesco is set to open a unique
recycling complex at its Winchester store in Hampshire which is expected to
reward the public for recycling plastics, cans and glass using a Tomra reverse
vending machine.  Also in the UK, Straight plc (recycling containers, UK)
announced that it will be acquiring is main competitor Blackwall (recycling
containers, UK) in a move that will double the turnover and profits of the
combined group.


Latest information available at: www.impax.co.uk/asset/iemdown.htm



6 January 2005


                      This information is provided by RNS
            The company news service from the London Stock Exchange